The Daily times. [volume] (Richmond, Va.) 1886-1889, 1887-09-07

by Dresei. Morgan q Go. In its scope and
influence indeed. 30 is likely 10 prove mora
important than even the West Shore deal
for the Baltimore and Ohio passes into the
hands Of capitalists friendly ~ the pcnusyi-
vamia. aud upon terms which remove 10 as
distributing factor in the trunk lime ,itua-
tion ana make 10 really part of the railroad
combination that covers more miles of fer
ritor, than any other system iu ti.a world
After n long conference of pitaiI-t~ at the
offices Of Drexel Morg an 81 Co., the follow
ing was issued hy that firm
preliminary contract has been executed 90
lay between the Baltimore and Ohio Railroad
company Barring Bros a Co ami Brown Ship.ey
90 Lonion and their allied houses 900 This
side Tan, contract provides FOR the negotiation
of eAeae0 Baltimore and Ohio consolidated
%. 100000 Baltimore and Ohio preferred stock
for the purpose of paying on ihe entire floating
debit ~ che company and PLACING b. on @ sound
financial basis Tie con iitons are a- follows
I.f Tine verincu.in of statements et. ~
made
.ld That fhe manage menf 0f the company
shall He placed Boz competent hands. satisfactory
fu fhr syndicate
Iurl That satisfactory contracts ~I1Il Doe Iuaif
between the Baltimore and ohio and tIr other
fol.ls fof Sos York business which shall remove
rI lnfnguni,me between them on fhe subject and
insure th. permanent working of the Baltimore
aud Ohio BOB entire harmony with fhr other trunk
lines also f0 avoid constitution 0r threat of COM
.tfi.fi0n ~ expensive parallel lines north ana
-a>i oi Philadelphia
Ilp h .u-ee crested on ths side are breXel
Morgan 4 CO.. urcxei & go Brown Brothers and
XII er rcaboi, a TO.
While fhc statement does mot seem very
clear or explicit aud does not go very fan
into details its meaning s very plain II
means Tine retirement ~ Robert Garrett
from active management. that the BaltimGr,
and Ohio has become crippled financially by
IL, long and expensive eight for entrance int,
thi, city and by ITS maintenance of am un
profitable telegraph system. ami thai com
bnufion of capitalist. boa, come 90 the
financial assistance of the road and that ty
the negotiation of SlOO)IOO 0l securities
they expect to place 10 ou % sound basis 10
mean, that the syndicate docs This Du CON
dition- which must appear very hard to Mr.
Garrett. Els they place the Baltimore and
Ohio property BOO the hands of syndicate
friendly Go the penusg lvauia railroad and
compel the abandonment Of che long cher
i,h-d plan of the cljor Garrett. the building
of an independent line into NeW York. pan.
alcnlg TIE Pennsylvania r. means finally
that handful of capitalists now really con-
troll 70 railroad system that covers nearly half
q continent in every direction. and with ihe
New York Central system absolutely con
trols the trunk line situation
SO mention B. made 900 thi, announcement
ot the telegraph. but DO can Boo stated as al
most certain that the syndicate viii not long
cafry Tire burden oi the Telegraph and the
latter Will sooner 0r later become part Of
the Western Union Ai that delays this
contamination probably D. the arrangement
of tine terms and the disposition of the other
telegraph companies which are now com.
netting with tine Western Union TIE sleep
inc ear system of the Baltimore and Ohio
viii. no doubt go o. tine Pullman DHr CON-
panv. the price of whose stock bias been
rapidly advancing DOB anticipation of
th,. result the Baltimore and Ohio *
press has alrea ~ passed into the hand,
of the United States Express company
Thu. the great Baltimore and Ohio system rs
di,mombered and ITS parts are swallowed mp
by rivals whose competition 10 va, unable 90
overcome.
Mr. Bowdon. of Drexel. Morgan q Co..
Doe speaking of the Baltimore aud Ohio deal
20 United Press reporter today. said:
"prexa Morgan q Co. know nothing about
the matter We are simply Boo the syndicate
which wa. formed 90 take zap the bond secur
ite,. and stralghten out the railroad What,
Il anything viii Dee done with the telegraph
company i.noi known -o far. and 30 SIS too
-oon % discuss it lt is q we'll known fact
that many are seeking To purchase it. but